Posted yesterday at IBD:
That so much importance is placed on the Fed chief’s temperament may seem absurd. But this indicates a much deeper problem: the Fed has too much power. The Federal Reserve is the most important economic planning agency in the world. It’s charged with promoting full employment, stabilizing prices, and overseeing the financial sector. So the new chair’s theoretical views, management style, and personality quirks could affect trillions of dollars of economic activity. Is it wise to hand such extraordinary power to an elite cadre of economists and bureaucrats? The pretenses of top-down planning have been debunked by history. Throughout the last century, every nation that adopted central planning had its economy flounder. Even at the microeconomic level, the limits of top-down planning are increasingly obvious.Read the whole thing.
